Question 1

What debt coverage ratio do I need in South San Francisco?

Accepted Answer

Most lenders require 1.0x to 1.25x depending on credit and down payment. Strong Peninsula rental comps help if your appraisal is conservative.

Question 2

Can I use cryptocurrency holdings as reserves for a DSCR loan?

Accepted Answer

Some non-QM lenders now accept verified crypto assets as reserves as of early 2026. Requirements vary by lender and volatility adjustments apply.

Question 3

Do DSCR loans work for short-term rentals near SFO?

Accepted Answer

Some lenders allow STR income if you provide a rent schedule and local permit. Others require 12-month traditional lease comparables regardless of actual use.

Question 4

How do Mello-Roos districts affect my debt coverage calculation?

Accepted Answer

Lenders include supplemental tax assessments in your monthly payment when calculating DSCR. South San Francisco districts can add $200-400 monthly to your obligation.

Question 5

Can I do a cash-out refi on a rental property with a DSCR loan?

Accepted Answer

Yes, but lenders cap cash-out at 75% LTV and require stronger debt coverage ratios. Each lender has different overlays on cash-out versus rate-and-term refis.

DSCR Loans in South San Francisco: Qualify by Property Cash Flow, Not Tax Returns